Lewiston officials propose 10% water rate increase to cover rising costs and capital needs

Lewiston staff recommended a 10% increase in water rates during the council's Thursday budget workshop, saying the adjustment is needed to cover rising operating costs and an uptick in debt service tied to planned water-main replacement bonding. "So as I mentioned, we're recommending a 10% increase in water," the presenter said, laying out revenue and expense projections.

The proposal, as presented, would raise revenues and increase specific line items such as meter charges and public fire protection fees; staff projected revenues would increase substantially but noted an estimated $2 million operating gap that would be covered by carry-forward cash from FY26. "You'll see at the bottom, the carry forward from 2026 will cover that deficit," the presenter said, adding that with the increase the utility would end the year with an estimated positive balance.

Why it matters: staff tied the rate request to both ongoing operating costs (including higher workers' compensation and wage steps) and capital needs, notably a multi-year distribution water-main replacement program and debt-service increases from bonds issued for that work. The LCIP request includes a multi‑year replacement program and pump-station investments the city described as necessary to reduce main breaks and improve reliability.

Councilors pressed staff on the timeline and the regulatory process. Officials said the city will file rate-case materials with the Maine Public Utilities Commission on April 16, give customer notice in May, hold a public hearing in late May, and submit a new rate schedule to the PUC on June 1 for an effective date of July 1 if approved. "On April 16, we will put a rate-case material filed with the PUC," staff said, summarizing the procedural steps.

What remains unsettled: staff said projections assume approval and that if the PUC approves a lower increase the city will need to adjust; they also flagged that ending balances depend on avoiding large main breaks. Staff estimated the carry-forward will leave the fund with a cushion if the increase is adopted; without it the city would end the year with significantly less cash.

Next steps: staff will file with the PUC and bring public notices and hearings as required; the council will consider the recommendation as part of the ongoing budget process.